“I am 80 years old, and these shares — amid recent revelations of Treasury looting — now provide considerable anxiety, emanating in great part from your consistent failure to exercise even a tiny modicum of the fiduciary duty you as directors owe to me, and to the Company.”

“…I have engaged counsel to commence suit against you and the Company for class redress for breach of duty and breach of contract.”

“However, before directing counsel to proceed I am writing to you in the hope that litigation can be avoided by your accepting my urging to seek and obtain clarification from outside counsel regarding your duties and liabilities as members of the Fannie Mae (Freddie Mac) Board of Directors, and to begin taking steps to behave as an informed, active board. I believe that you are a board of directors subject to Delaware (Virginia) law, that you owe a fiduciary duty to the Company and its preferred shareholders, and that you may be held liable for a breach of your statutory obligations as directors and of the duties owed to the Company and its preferred shareholders with respect to the payment of dividends and other matters.”

“I look forward to hearing from you promptly (i.e. by no later than March 10, 2016).”

I recommend reading the entire 43-page piece, however the following is Mr. Angel’s conclusion:

“I believe that the GSEs should be responsibly reprivatized, with proceeds being legislatively directed to finance public housing, education, healthcare, and other social programs. The worst option would be to throw the money obtainable from a GSE reprivatization away, and that is exactly what will happen if no action continues to be the government’s chosen path. In the past, the government’s stated reason for liquidating Fannie and Freddie was that they were flawed. Obviously—but keep in mind that more than seven years of conservatorship has now securely validated the GSE model as a worldwide housing finance best.

Prudent owners fix flawed but valuable companies, just as prudent governments make use of the best available engines when the country is in crisis mode. American taxpayers were big-time losers in the financial crisis of 2008. Handled correctly, the responsible reformation and reprivatization of Fannie Mae and Freddie Mac could set the stage for a big come-from-behind American taxpayer win.”

It’s highly doubtful that Mr. Angel will receive adequate responses that would prevent litigation against Fan and Fred Boards…if he receives any response at all.

“I saw the Angel in the marble and carved until I set him free.” ~Michelangelo